Washington, D.C.--The Commodity Futures Trading
Commission announced today that it is amending its rules for agricultural
trade options (ATOs) to make them simpler and more flexible for users by
permitting cash settlement. Agricultural trade options are off-exchange
options on specified domestic agricultural commodities offered to
producers, processors or merchandisers in connection with their business.
Under the prior rules, an agricultural trade option, if exercised, had to
result in physical delivery of the underlying commodity. The revised cash
settlement provisions will give producers greater flexibility. The
Commission is also streamlining the registration requirements for
agricultural trade option merchants and their sales agents. Finally, the
Commission is simplifying required disclosure statements and reducing
overall reporting and recordkeeping requirements.

The final ATO rules will be published shortly in the Federal
Register and will become effective 60 days after their publication
date. The Commission further announced that it will permit firms and
individuals to register with the Commission in advance of the rules'
effective date so that they may begin offering ATOs for sale as soon as
the rules become effective. Information about registering as an
agricultural trade option merchant can be obtained from the National
Futures Association at (312) 781-1410.

A copy of the Commission's Notice of Final Rulemaking can be obtained
by contacting the Commission's Office of Secretariat, Three Lafayette
Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202)
418-5100. The Commission also intends to make its Notice of Final
Rulemaking available in the near future on its website at www.cftc.gov.